Wiley Practitioner's Guide to GAAS 2013: Covering all SASs, SSAEs, SSARSs, and Interpretations

AU 420: Consistency of Application of Generally Accepted Accounting Principles

AU-C 708: Consistency of Financial Statements

AU EFFECTIVE DATE AND APPLICABILITY

Original Pronouncements	Statements on Auditing Procedures (SAPs) 53, 43, and 88.
Effective Date	These statements currently are effective.
Applicability	Audit of financial statements in accordance with generally accepted auditing standards (GAAS).
NOTE: The consistency standard does not apply in the audit of the financial statements of a new entity. It applies either to financial statements prepared in accordance with generally accepted accounting procedures (GAAP) or another comprehensive basis of accounting.

AU-C EFFECTIVE DATE AND SUMMARY OF CHANGES

SAS No. 122, Codification of Auditing Standards and Procedures, is effective for audits of financial statements with periods ending on or after December 15, 2012.

The clarified standard supersedes AU Section 420 (SAS No. 1, Codification of Auditing Standards and Procedures, Section 420, Consistency of Application of Generally Accepted Accounting Principles, as amended)

The clarified SAS does not change or expand existing standards in any significant respect except as follows:

• AU Section 420 states that changes and material reclassifications made in previously issued financial statements to enhance comparability with current financial statements ordinarily would not need to be referred to in the independent auditor’s report. However, the clarified SAS requires ...